TMI Blog2000 (1) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... dated July 23, 1997, for the assessment year 1977-78 : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that self-assessment tax paid by the assessee gets adjusted against the assessed tax and thus partakes of the character of tax paid in pursuance of the assessment order, and in that view in directing the Assessing Officer to allow interest under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee towards payment of interest under section 244(1A), was negatived by the Assessing Officer. In the first appeal also, the Commissioner of Income-tax (Appeals) held that interest under section 244(1A) becomes due to an assessee only on any amount paid by him in pursuance of any order of assessment or penalty. He concluded that in the instant case, no payment had been made by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 244(1A) in the above manner. The controversy now stands concluded by the decision given in the case of Modi Industries Ltd. v. CIT [1995] 216 ITR 759 (SC). That decision has taken into consideration various provisions by which the interest is payable. Interest under section 244(1A) is payable even when the tax or penalty paid by the assessee pursuant to the order of assessment is reduced in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded under section 240 and with interest, if any, under section 244. The refund amount is not treated any more in the Act as a portion of the advance tax paid by the assessee. What is refunded pursuant to an appellate order is a portion of what was treated and dealt with as payment of income-tax by the assessee. Its character is in no way different from the tax paid pursuant to notice of demand und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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